Pension Sub-committee And Pension Board - 17/12/2001

At a SPECIAL MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE of the FINANCE COMMITTEE held at Dundee on Monday, 17th

Present:-

Councillors

George Regan

Julia Sturrock

Lord Provost John Letford

Willie Sawers

In attendance:-

Mr. W. Gowans, Tayside Full-time Trade Union Officers' Group

Mr. R. McKelvie, TGWU

Councillor REGAN, Convener, in the Chair.

The minute of meeting of this Sub-Committee of 21st November was noted.

Unless marked thus * all items stand delegated.

The Sub-Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the public and press be excluded from the meeting in order that the undernoted item of business be considered in private on the grounds that it involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part 1 of Schedule 7(A) of the Act.

I APPOINTMENT OF GLOBAL CUSTODIAN

There was submitted Report No. 819-2001 by the Director of Finance updating the Sub-Committee on the Global Custodian Review as agreed at the meeting on 21 November 2001 (Article No. IV and Report No.737-2001 refer) and recommending the appointment of a global custodian.

The Sub-Committee had approved a short list of three custodians and officers of the Finance Department had undertaken visits to each when Hymans Robertson, the Fund's consultants, were also present and had provided a separate report detailing the conclusions. The cost differences between the three candidates were marginal.

The Sub-Committee approved the following recommendations:-

(a)that Northern Trust be appointed as global custodian of the Fund with effect from 1 April 2002.

(b)that the Director of Finance negotiate with Investment Managers reductions in their fees in relation to changes in custody arrangements.

(c)that the Director of Finance report back on the costs and benefits of a stock lending programme.

GEORGE REGAN, Convener.